A recent NBC News poll indicates that most voters prioritize inflation and the border crisis as their top concerns. When it comes to handling these issues, a majority of respondents believe former President Trump would do a better job than President Biden. The poll also shows that Trump leads Biden in a hypothetical head-to-head matchup by a margin of 2%.
Key findings from the Judo Bank S&P Global PMI Flash / Preliminary for April 2024 indicate ongoing inflation pressures and insights on the Reserve Bank of Australia’s (RBA) outlook. The report highlights the persistence of inflationary pressures and the challenges faced by businesses in managing these pressures.
Analysts at Macquarie believe a significant miss in this week’s US inflation data is necessary to soften the Federal Reserve’s hawkish stance and potentially open the door for a December rate cut. The bank highlights the need for a substantial deviation in either or both the consumer price index (CPI) or core CPI numbers to alter the Fed’s current sentiment.
Vanguard, a leading asset manager, anticipates less aggressive rate cuts from the Federal Reserve. The firm predicts a “deferred landing” for the US economy, characterized by ongoing growth and persistent inflation above the target. Vanguard also cautions against potential fiscal extravagance.
The American dream seems to be out of reach for many due to inflation, a competitive housing market, and increasing debt. A new report shows that in every state, you need to earn at least six figures to achieve the dream of a home, car, pet, and family. The most expensive state to live the American dream is Hawaii, where you need almost $260,800. The cheapest state is Mississippi, where you need less than $110,000.
The Bank of England’s (BoE) recent dovish comments have sparked a repricing of its stance, leading to a weaker British Pound (GBP) at the start of the week. The GBP’s underperformance is particularly evident against the US Dollar (USD) due to concurrent USD strength and Europe’s more favorable inflation outlook. Citi analysts anticipate further GBP depreciation in the 5-10 days following this repricing event.
Goldman Sachs’ strategists have highlighted the potential of the Dollar and Swiss Franc as hedges against inflation and geopolitical uncertainties. They have adjusted their Euro forecast, signaling a bearish outlook, and revised their EUR/USD target to 1.05. The analysis suggests that these currencies have shown resilience to rate sell-offs and are likely to maintain their strength given ongoing concerns about inflation and global tensions.
Geopolitical instability, particularly in the Middle East, has become the primary concern for U.S. corporate credit investors, a BofA Global Research survey reveals. Despite escalating tensions, investors remain bullish on investment-grade corporate credit, driving issuance to $33.6 billion last week. However, concerns about inflation remain, with only 18% of investors holding above-normal cash levels. The survey also highlights strong sell-offs in high-yield corporate bonds last week.
Dollar Tree, the parent company of Family Dollar, has announced the closure of 35 Family Dollar locations in Ohio, affecting approximately 260 employees. This is part of a larger plan to close 1,000 stores nationwide due to underperformance and challenging market conditions.
The Federal Reserve’s focus on interest rates to combat inflation may not be effective given the shifting drivers of inflation. Healthcare, housing, and insurance costs are significant contributors to inflation, and addressing the structural issues and price-fixing in these sectors is crucial. Reliance solely on monetary policy may not suffice, and a broader approach considering sectoral factors is necessary.
